Georgia has become one of the most promising jurisdictions for crypto businesses in Europe, not only because of its low taxes and fast setup, but also because it offers something most countries struggle to achieve: a clear, workable balance between crypto freedom and financial compliance.

The country’s regulators have taken a proactive approach to the Financial Action Task Force (FATF) guidelines, ensuring that crypto companies can operate legally while maintaining global anti–money laundering (AML) standards.

In short, Georgia lets crypto companies move fast, without crossing compliance lines.

But how exactly do FATF rules apply to crypto in Georgia? And what should founders do to stay on the right side of the law while keeping their operations efficient?

Let’s break it down.

Understanding FATF and Its Role in Crypto Regulation

The Financial Action Task Force (FATF) is an intergovernmental body that sets global standards for combating money laundering, terrorist financing, and other financial crimes. Its recommendations are followed by over 200 jurisdictions, including Georgia.

When FATF updated its guidance in 2019 to include Virtual Assets (VA) and Virtual Asset Service Providers (VASPs), it changed how countries and crypto businesses operate.

FATF’s goal isn’t to restrict crypto, but to make it transparent. Every transaction that crosses borders, every exchange that handles funds, and every wallet that holds assets for clients should follow basic AML and Know Your Customer (KYC)rules.

Here’s what FATF compliance means in practice:

Customer Due Diligence (CDD): Verify who your clients are.
Transaction Monitoring: Track and flag suspicious activity.
Record-Keeping: Maintain logs and identity records.
Reporting: File suspicious activity reports with local authorities.

These principles are universal, but how Georgia applies them is what makes the country so attractive to crypto founders.

How Georgia Adopts FATF Standards

Georgia follows FATF guidelines through its Law on Facilitating the Prevention of Money Laundering and Terrorism Financing, enforced by two main bodies:

The National Bank of Georgia (NBG): Oversees Virtual Asset Service Providers and ensures their compliance with FATF standards.
The Financial Monitoring Service (FMS): Supervises AML/KYC practices and handles reports of suspicious activity.

What’s unique about Georgia is that it implements FATF standards without overregulating startups.

Instead of requiring every crypto company to apply for a license, Georgia applies FATF compliance proportionally, meaning only businesses that hold or manage client assets are regulated as VASPs.

For most Web3 startups, DAOs, and blockchain developers, that means no licensing, just smart compliance.

Georgia’s Legal Status of Crypto

Georgia’s approach to crypto regulation is designed for clarity.

Crypto is legal and classified as property, not currency.
It’s legal to trade, mine, and use crypto for business payments.
There’s no VAT on crypto-to-fiat conversions.
You can pay freelancers and employees in crypto (converted into GEL for compliance).

Only companies that perform exchange, transfer, or custodial wallet services for others fall under VASP regulation.

This flexibility allows most crypto businesses to remain compliant with FATF principles without needing full financial licensing, something that sets Georgia apart from more restrictive jurisdictions like Estonia or Germany.

Who Needs to Register as a VASP in Georgia

Under FATF guidelines and Georgian law, a Virtual Asset Service Provider (VASP) is any business that conducts one or more of the following activities:

Exchange between virtual assets and fiat currencies.
Exchange between one or more virtual assets.
Transfer of virtual assets (sending on behalf of another party).
Safekeeping or administration of virtual assets for clients.
Participation in or provision of financial services related to an issuer’s offer or sale of a virtual asset.

If your business fits any of those categories, you must register with the National Bank of Georgia (NBG) and maintain a FATF-compliant AML program.

If your business simply builds blockchain tools, mines crypto, or uses crypto for payments, you don’t need to register, but you still need to follow basic AML/KYC best practices.

This layered system means Georgia can enforce FATF rules while allowing innovation to thrive.

Core FATF Compliance Obligations for Georgian Crypto Businesses

Whether or not your company is a registered VASP, you’ll need to follow the key FATF principles that apply to all crypto entities.

1. Know Your Customer (KYC)

Every crypto business operating in Georgia should verify the identity of its clients or partners before transacting.

This includes:

Collecting full names, IDs, and addresses.
Screening for politically exposed persons (PEPs).
Checking against international sanctions lists.

Gegidze supports crypto companies in setting up fully digital KYC workflows, allowing verification of contributors, employees, and clients remotely, ideal for Web3 and DAO structures.

2. Anti–Money Laundering (AML) Monitoring

AML is about keeping track of how funds move. FATF expects crypto companies to monitor transactions for suspicious behavior, such as:

Unusually large transfers.
Multiple transactions just below reporting thresholds.
Transfers involving high-risk jurisdictions.

In Georgia, all VASPs must have automated or manual AML systems to flag and report these cases to the Financial Monitoring Service (FMS).

Even if your business isn’t a VASP, implementing a basic monitoring policy helps ensure compliance when working with foreign partners or banks.

3. Record-Keeping and Reporting

FATF’s rule here is simple: document everything.

Keep customer identification and transaction data for at least five years.
Maintain internal reports on AML reviews and risk assessments.
File suspicious transaction reports with the FMS when necessary.

Georgia’s regulations make this easier by allowing all filings to be done electronically. Gegidze integrates reporting directly into its payroll and payment systems, making FATF compliance almost effortless for clients.

4. Appoint a Compliance Officer

Every registered VASP must appoint a Compliance Officer, the person responsible for implementing and maintaining AML policies.

This role ensures:

Internal training and awareness.
Oversight of due diligence.
Timely filing of reports.
Direct communication with the Financial Monitoring Service.

For startups that don’t have an in-house legal team, Gegidze helps appoint or outsource compliance officers to meet FATF requirements efficiently.

FATF’s Travel Rule: The Next Step for Global Compliance

The FATF Travel Rule is one of the most discussed updates in crypto compliance. It requires VASPs to share sender and receiver information for transactions above a certain threshold, similar to how banks handle wire transfers.

Georgia is gradually implementing this rule under the supervision of the National Bank. While it’s not yet mandatory for all local crypto transactions, companies dealing with international transfers should prepare to comply.

How to stay ready:

Use crypto analytics tools to identify counterparties.
Maintain transaction records with sender and recipient details.
Partner with VASPs or intermediaries that already follow the rule.

Gegidze assists clients in setting up Travel Rule–ready procedures, ensuring they meet both Georgian and global FATF expectations without disrupting operations.

Georgia’s Advantage: Compliance Without Complexity

Most countries that follow FATF guidelines have turned compliance into bureaucracy. Georgia chose another path, apply the same global standards but make them functional for startups.

You only register if you actually manage client funds.
AML and KYC systems are proportional to risk, not one-size-fits-all.
Reporting is digital and lightweight.
Regulators are collaborative rather than punitive.

This approach gives Georgia a key advantage: companies remain fully compliant while keeping operations simple, affordable, and remote-friendly.

It’s why Web3 startups, DAOs, and crypto payment platforms continue to move their structures here, and why Gegidzehas become the go-to compliance partner for crypto businesses operating under Georgian law.

Common Compliance Pitfalls and How to Avoid Them

Even in a crypto-friendly environment like Georgia, compliance mistakes can be costly. Many foreign founders misunderstand how FATF rules translate into everyday business operations.

Here are the most common pitfalls and how to avoid them.

1. Misunderstanding VASP Requirements

Some companies mistakenly believe every crypto-related business must register as a VASP.In Georgia, that’s not true.You only need registration if you hold or transfer client assets or operate as an exchange.

What to do instead:If you’re running a blockchain development studio, DAO, or freelance marketplace, you can operate as a Virtual Zone company or International Company without VASP registration, while still following KYC and AML good practices. Gegidze helps determine your exact category before setup.

2. Weak or Incomplete KYC Processes

Skipping KYC or relying on outdated tools is one of the fastest ways to lose banking access. FATF standards require companies to verify identities, even when transactions seem low-risk.

Solution:Implement tiered KYC, basic checks for small transactions, full due diligence for large ones. Gegidze offers ready-made KYC templates, remote verification systems, and ongoing screening tools that meet FATF expectations.

3. Poor Record-Keeping

Another common mistake is failing to store customer and transaction records properly. FATF requires companies to maintain data for five years, even after the client relationship ends.

Solution:Store your compliance documents in a secure digital archive. Gegidze’s integrated platform automatically records and stores every crypto-to-fiat conversion, transaction, and tax filing, giving your business a digital audit trail ready for inspection.

4. Ignoring Transaction Monitoring

Many founders think small or early-stage crypto companies don’t need AML monitoring systems. That’s risky. Banks and regulators expect all crypto companies, regardless of size, to have at least a basic system in place.

Solution:Create simple thresholds, for example:

Flag transactions above GEL 30,000.
Monitor repeated small transfers from new wallets.
Track counterparties linked to high-risk countries.

Gegidze helps design lightweight AML monitoring tailored to your transaction volume, so compliance stays manageable, not overwhelming.

5. Not Reporting Suspicious Transactions

FATF emphasizes the importance of Suspicious Activity Reports (SARs). In Georgia, these go to the Financial Monitoring Service (FMS). Failure to report can lead to fines or banking complications.

Solution:Set internal rules: if a transaction looks suspicious, unexplained source, mismatched data, or high frequency, document it and report. Gegidze assists businesses with FMS filings and internal SAR documentation.

FATF Compliance in Action: How Different Crypto Businesses Apply It

Let’s look at how various crypto business models stay compliant under Georgian and FATF rules.

Web3 Startups

A Web3 development studio based in Georgia builds smart contracts for foreign clients.

It registers as a Virtual Zone company, paying 0% corporate tax on foreign income.
Since it doesn’t manage client funds, it’s not a VASP.
Still, it runs a basic KYC process for its customers and keeps transaction records for transparency.Outcome: Fully compliant, tax-efficient, and FATF-aligned.

DAO Payroll Management

A DAO pays global contributors in crypto.

Through Gegidze, crypto is converted to GEL or USD at 1.2–1.5% rates.
Contributors are classified correctly: employees (5% income tax) or contractors (1% turnover tax).
Gegidze maintains KYC records and transaction logs, ensuring FATF reporting readiness.Outcome: DAO stays compliant, contributors get legal income proof, and taxes are minimal.

Crypto Exchange

A startup runs a crypto-to-fiat exchange for local and international clients.

It registers as a VASP under the National Bank of Georgia.
Implements robust AML/KYC systems.
Appoints a Compliance Officer and conducts transaction monitoring.Outcome: Fully FATF-compliant and legally protected, with better access to local banks.

Crypto Mining Company

A mining company operates in a Free Industrial Zone (FIZ).

It benefits from 0% corporate tax and no VAT.
Since it doesn’t manage client funds, no VASP license is required.
It still follows AML principles for equipment purchases and electricity payments.Outcome: Legally structured, FATF-safe, and tax-optimized.

FATF’s Travel Rule: Georgia’s Next Big Step

The Travel Rule is an extension of FATF Recommendation 16, requiring crypto businesses to exchange sender and recipient information for transactions over a certain threshold.

While many EU and G7 nations already enforce it, Georgia is taking a phased approach:

VASPs dealing with international transfers must be able to share transaction data upon request.
For domestic crypto operations, regulators currently emphasize documentation and record-keeping rather than real-time reporting.

Why it matters: Implementing the Travel Rule early shows regulators and banking partners that your business is serious about compliance, increasing trust and lowering friction for future growth.

Gegidze helps crypto companies integrate simple Travel Rule–ready solutions, including wallet verification and data-sharing templates that match FATF requirements without overcomplicating transactions.

Why FATF Compliance Strengthens Your Business

Many founders see compliance as a cost. In Georgia, it’s actually a growth strategy.

Here’s why:

Better banking access: Georgian banks prioritize businesses that follow AML/KYC standards.
Investor confidence: FATF-aligned operations attract global partners who want regulatory certainty.
Reputation protection: Transparent structures reduce audit and tax risk.
Operational stability: Compliance prevents future disruptions as regulations evolve.

By staying ahead of FATF rules now, you secure your company’s credibility for the long term and ensure smoother expansion into global markets.

How Gegidze Keeps You FATF-Compliant from Day One

Gegidze makes compliance simple, scalable, and affordable.

Here’s what your business gets:

VASP Classification and Registration

Determine whether you qualify as a VASP.
Handle registration with the National Bank of Georgia.
Draft AML policies and compliance manuals aligned with FATF standards.

AML and KYC Implementation

Remote client onboarding tools.
Ongoing customer screening and risk scoring.
Sanctions list integration.

Transaction Monitoring and Reporting

Smart alerts for large or unusual crypto movements.
Pre-filled templates for FMS reporting.
Secure record storage for 5+ years.

Payroll and Crypto-to-Fiat Management

Legal payroll setup (5% employees, 1% contractors).
Fiat conversion at 1.2–1.5% rates.
Automated tax and AML filings.

Ongoing Compliance Support

Appointed compliance officer (in-house or external).
Regular updates as FATF rules evolve.
Continuous legal oversight to ensure zero gaps.

With Gegidze, compliance becomes part of your company’s foundation.

Georgia’s Advantage Over Other Jurisdictions

Let’s compare Georgia to other FATF-compliant nations:

Feature	Georgia	Estonia / EU	UAE	Singapore
Crypto Legality	Legal, defined as property	Legal, licensed	Licensed only	Highly regulated
Corporate Tax	0–5% under special regimes	20%	9%	17%
VASP Requirement	Only if custodial or exchange	Mandatory	Mandatory	Mandatory
AML/KYC Burden	Proportionate	Heavy	High	High
Ease of Setup	1–2 days	2–4 weeks	4–6 weeks	6+ weeks

Georgia’s FATF compliance system protects your business without stifling it, an increasingly rare balance.

Conclusion: Compliance Without the Complications

The future of crypto business lies in countries that can combine freedom with accountability. Georgia is one of the few that gets it right.

It applies FATF rules in a practical way, focusing on transparency, not red tape. For founders, that means you can build, hire, and transact freely while maintaining the trust of regulators, banks, and investors.

And with Gegidze, compliance is not a burden; it’s a built-in advantage. From VASP registration to AML monitoring, Gegidze ensures every crypto transaction, payroll, and report is fully FATF-aligned, so your business stays secure, scalable, and globally respected.

Ready to set up your crypto company in Georgia and stay fully FATF-compliant from day one?

Book a consultation with Gegidze and get legal registration, AML setup, and tax optimization handled remotely in just a few days.

Frequently asked questions (FAQ)

What are FATF rules, and why do they matter for crypto companies in Georgia?

FATF (Financial Action Task Force) sets global standards for anti–money laundering and counter–terrorism financing. Georgia follows FATF guidelines through the National Bank and Financial Monitoring Service. For crypto businesses, this means maintaining AML, KYC, and record-keeping systems to ensure transparency and banking access.

Do all crypto companies in Georgia need to register as VASPs?

No. Only companies that hold, transfer, or exchange client crypto assets must register as Virtual Asset Service Providers (VASPs) with the National Bank of Georgia. Developers, miners, DAOs, and Web3 startups that don’t manage third-party funds can operate without registration — but must still follow AML and KYC standards.

What are the main FATF compliance requirements in Georgia?

Crypto businesses must:

Verify client identities (KYC).
Monitor transactions for suspicious activity.
Keep transaction and identity records for at least 5 years.
Report suspicious transactions to the Financial Monitoring Service (FMS).
Appoint a compliance officer if operating as a VASP.

What is the FATF Travel Rule, and does it apply in Georgia?

The Travel Rule requires VASPs to exchange sender and receiver details for crypto transactions above a set threshold. Georgia is gradually implementing this rule in line with FATF guidance. Gegidze helps companies prepare by establishing Travel Rule–ready documentation and secure transaction procedures.

How does Gegidze help crypto companies stay FATF-compliant?

Gegidze provides a complete compliance framework:

Determines whether your business qualifies as a VASP.
Registers your company and prepares AML/KYC documentation.
Implements monitoring, reporting, and Travel Rule procedures.
Handles payroll, crypto-to-fiat conversion, and tax filings — all FATF-aligned.